By A.J. Kaufman, Managing Editor
According to its website, Tennessee Hills Distillery believes “the best spirits are born in the mountains, live the adventure and always be responsibly rowdy with Tennessee Hills.”
With their new 39,000 square foot distillery across from The Pinnacle celebrating its grand opening during Thanksgiving weekend, the owners hope to live up to that description.
Alongside his wife, Jessica, Stephen Callahan founded Tennessee Hills Distillery in Jonesborough in 2014. A decade later, the brand has expanded throughout our region. And during that time, the company has found important ways to enrich the lives of local residents.
The Bristol facility is two stories, with a full bar upstairs, a tasting bar downstairs, along with an outdoor bar with seating looking southeast toward Roan Mountain.
The new operation will push the staff of Tennessee Hills to over 70. The production facility will rank Tennessee Hills as the 4th largest self-producing distillery in the Volunteer State and capable of distilling 100 barrels of whiskey per week.
Callahan, 37, has even loftier goals.
“I want to be one of the largest single malt producers in the country, if not the largest, in the next couple years,” Callahan explained to the Business Journal during a private tour. “Tennessee whiskey, in general, I want to elevate the way bourbon has been done in Kentucky…I want to elevate the Tennessee whiskey game in a way that it’s never been done. And with this facility and with the talent we have on our team, there’s no reason we shouldn’t be able to. That’s my mission right now, my goal, and that’s what’s driving us.”
Tennessee Hills’ canning line can produce 30,000 cans in an eight-hour timeframe. When hitting on all cylinders, Callahan says the brewery and distillery combo should push close to 50 to 60,000 gallons of mash and/or beer each week out of the facility, while utilizing upwards of 150,000 pounds of grain per week. All of that is sourced in Tennessee from a single farmer. Having grown up on a Northeast Tennessee cattle farm, Callahan says sustainability is especially important to him.
Their Smokestillery also offers a fresh menu of barbecued meats — brisket, wings, ribs — that can be enjoyed on the patio under warmer weather with mountain views. They cater events and plan a new outdoor kitchen for the spring with a smoker.
The experiential location has a full upstairs bar with 18 taps, full outdoor bar with 36 taps, a Sensory Deprivation Room and more. He recently added a brewery that includes a 33-barrel 4 vessel brewing system in an attempt to go statewide with beer distribution.
The emphasis remains on the overall experience at Tennessee Hills.
“Everything that we do is based on the idea of experiential,” he said. “We want to touch your senses — touch, taste, smell, see, hear; it’s a reason we open up the facility. A lot of people like to do things behind closed doors. We want to be fully transparent. We’ll show you how we do it. We’ll tell you how we do it. We just dare you to do it better.”
Callahan says he wants to create selfie moments, where visitors can tag Tennessee Hills on social media and “tell everybody how good of a time you’re having.”
“Not only have we invested millions of dollars’ worth of equipment, but we’ve also invested in talent,” the Washington County native added.
Master Brewer Daniel Smith out of Johnson City oversees brewing operations and Tennessee Hills recently hired Jake Terry, a head brewer from San Diego, who’s relocating to the Tri-Cities.
“The way we’re gonna compete moving forward is through quality and innovation,” Callahan said.
He adds that he hopes to begin tours of the distillery in late January. They include observation rooms to view the boiler and water filtration room, blending room, laboratory and more.
Callahan served four years as an alderman in Jonesborough, is on the board of trustees at his alma mater, Emory & Henry University, and helped establish a Brewing and Distillation Studies Minor at ETSU last year, which he hopes to make into a major program during the next year. This can aid workforce development in the growing industry and specialized field.
Additionally, it’s not just about business. A few years ago, Tennessee Hills played a critical role in providing essential supplies to meet demand during a crisis. During challenges emanating from Covid-19, they responded to the urgent need for hand sanitizer across the region by quickly pivoting its operations to manufacturing hand sanitizer to address community shortages.
Tennessee Hills was established with the vision of creating exceptional handcrafted spirits as a brand that represents the people, culture, and spirit of the Appalachian Highlands. If business during the first several weeks is any indication, the representation is occurring.
